Property prices in Spain continue to rise

Anyone who has been following the Spanish property market in recent years will undoubtedly have noticed that property prices in Spain are rising steadily. This trend is set to continue in 2026. According to the latest figures from the Spanish property registers, the average sale price of a property in Spain in the first quarter of 2026 was €2,429 per m². That is 8.9% higher than a year earlier and yet another historic record. For existing properties, the average price was €2,366 per m², whilst new-build properties cost an average of €2,655 per m². The question prospective buyers regularly ask us is: is this still a good time to buy property in Spain, or would I be better off waiting?

There is no single explanation for rising house prices. Various factors are at play simultaneously. One of the most important is the difference between supply and demand. Spain remains particularly attractive to both Spanish and foreign buyers. The climate, the quality of life, the good transport links from Belgium and the Netherlands, and the wide range of coastal regions make a property in Spain an attractive option as a second home, a permanent residence and an investment. At the same time, the supply of new homes is not growing fast enough to meet demand. The Banco de España recently pointed out that in 2025, approximately 92,000 new homes were completed, whilst there was an increase of around 225,000 new households alone. In addition, non-residents purchased around 55,000 homes. The result is predictable: when demand continues to outstrip available supply, upward pressure is placed on property prices.

The Spanish property market is, of course, not a uniform market. Prices and price rises vary greatly by region, city and even neighbourhood. Nevertheless, we see that regions which are attractive to both Spanish and international buyers in particular continue to attract a great deal of interest. These include not only the Costa Blanca, but also the Costa Cálida, Costa del Sol, Costa de Almería, the Canary Islands such as Tenerife and numerous other coastal areas. Within these regions, properties in prime locations close to the sea, modern new-build developments and high-quality homes with outdoor space are particularly popular.

Anyone looking specifically at new-build properties in Spain will notice that prices there have often risen even more sharply. There are several reasons for this. Building land in prime locations is in short supply, building materials and labour costs have risen, and new projects must comply with increasingly stringent technical and energy efficiency standards. The average price of €2,655 per m² for new-build properties in the first quarter of 2026 illustrates this trend. Furthermore, attractive projects in prime locations are often sold off largely before or during construction.

Not necessarily. You don’t buy a property in Spain simply because someone says prices will rise again next month. First and foremost, it must be a property that suits your needs, budget and plans. However, anyone who has been waiting for several years in the hope that property in Spain will become significantly cheaper again has, for the time being, gained little benefit from that strategy. No one can predict with certainty how property prices will develop in the future. However, current market conditions do show that there are structural factors supporting prices, including limited new-build construction and sustained demand for homes. It is also worth noting that the current situation cannot simply be compared with the Spanish property boom prior to 2008. The Banco de España points out that new-build construction is much more limited today and that banks are more cautious when granting loans.

Rising property prices do not mean that every property is automatically a good investment. On the contrary. It is precisely in a rising market that it becomes more important to take a critical look at location, build quality, price per square metre, legal status, future resale potential and the available supply in the surrounding area. That is why, at immo ID España, we do not just look for a beautiful property. Together with our clients, we consider the full picture and guide them through the buying process in Spain.

Have you been dreaming of a second home, holiday home, investment property or permanent home in Spain for some time? If so, it’s particularly important to start your search well-informed. There’s no need to rush into a decision. However, waiting for the perfect moment could also mean that properties which are within your budget today may become harder to come by tomorrow. So do take a look at our current listings in our offer.

Can’t find your ideal property there? No problem. Let us know what you’re looking for via our info sheet. Based on your requirements, we can search much more specifically within our network in Spain. Because when it comes to property in Spain, it’s not just about the right moment. It’s mainly about the right property, in the right location, at the right price.